Are you sure?

Government to sell 20% stake of Croatian telecom

The Croatian government decided Friday to sell no less, than 20% of the shares of the Croatian telecommunications company — controlled by Deutsche Telecom — on the stock market at Zagreb and London.

In the third phase of the privatization of Croatian telecommunications company Hrvatske telekomunikacije (HT), 20% of the share will be offered on sale, and the money obtained from the sale will be used to pay the third installment to pensioners. „In this way, I am telling all the pensioners who are waiting for the third installment that the money will be paid to them in time,” said Prime Minister Ivo Sanader at a government session. The sale is tentatively set for September, the deputy Prime Minister Damir Polancec said. The shares of HT-Hrvatske Telekomunikacije d.d. (T-Com) will be sold on the Zagreb and London stock markets, with the starting price of 100 kuna (€13.6, $18). It would be the second time that the shares of one of Croatia's most profitable companies are being sold by public tender. Late last year, the government sold 17% of shares in INA, the local monopoly. Previously, the government usually sold shares in top companies to big foreign investors.

„The shares will be offered to Croatian citizens with priority rights and with certain benefits, and one share for free for ten purchased ones, which a citizen has to keep for at least a year, will be an additional benefit,” explains Polancec. Croats will have the right to buy T-Com shares first, in amounts of up to 38,000 kuna (€5,170; $6,928) per person. They also would get one share for each 10 of them they buy. It would be the second wave of privatization of T-Com. In 2001, Deutsche Telecom purchased a controlling 51% stake with the government controlling the rest. Polancec said there has been „huge interest” for T-Com shares, so the government expects a „very successful” sale. (,